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LH Group Ltd (1978) fair value: what the stock is really worth

As of Sep 30, 2026: fair value of LH Group Ltd HK$0.47, price HK$0.22, upside +114.6%, quality 72 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? Yes
  2. Good quality? Yes
  3. Add to watchlist

Consumer Cyclical · HK · ISIN KYG547241029

LG Thin data Sep 27, 2026

LH Group Ltd

1978 · HK

Clearly undervaluedStrong Fair Value upside, but quality is only moderate.

✓Fair value HK$0.4700 · Strongly undervalued (+114.6%)
✓Quality 72/100
!Mixed Growth (revenue YoY +2.4 %/yr)
!Thin margins · 0.2% net margin (TTM)
✓generates free cash flow
!Mixed vs. peers (6/11)
!Narrow moat 20/100
!Evidence only low, so the estimate is less certain
!Weak on future: 7 out of 100
!Weak on past: 3 out of 100
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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

HK$1.18 HK$0.2080 Fair Value HK$0.4700 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 27, 2026.

How to read this chart

60‑month range HK$0.2080 – HK$1.18 · fair‑value band HK$0.3300 – HK$0.6000 · the HK$0.2190 price screens below the HK$0.4700 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 27, 2026.

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Company profile

LH Group Limited, an investment holding company, operates as a full-service restaurant company in Hong Kong. Its restaurants specialize in Asian, Japanese, and Cantonese cuisines.

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LH Group Limited, an investment holding company, operates as a full-service restaurant company in Hong Kong. Its restaurants specialize in Asian, Japanese, and Cantonese cuisines. The company operates various restaurants under the Mou Mou Club, Peace Cuisine, Wing Wah Allday, Pot Master, and #HAP Taiwanese Hotpot, Shabu Days, SO MEEN, and Twins Liangpi x KABU self-owned brands, as well as GyuKaku, Gyu-Kaku Buffet, Gyu-Kaku J, On-Yasai, Gyu-Kaku JinanBou, The Matcha Tokyo, and Hikiniku To Come franchised brands. It also sells food ingredients to related parties, external third ingredients, and other parties and businesses. In addition, the company engages in the property holding activities; provision of management and retail operation services; provision of procurement and logistics services; and trading of ingredients. The company has a strategic partnership with FairPrice Group Food Services Pte. Ltd. The company was incorporated in 2017 and is based in Kowloon Bay, Hong Kong. LH Group Limited operates as a subsidiary of LHG Holdings Limited.

Stock analysis

LH Group Ltd (1978) currently trades at HK$0.2190, while our model-based Fair Value estimate is HK$0.4700, implying the stock looks roughly 53.4% undervalued today.

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Valuation

Bull case: the DCF Models group reads highest at a median of HK$2.20 per share, and 17 of the 24 models we run sit above the HK$0.2190 price.

Bear case: the Multiples group reads lowest at HK$0.0500, and 7 of the 24 models stay below the price. Evidence for this calculation is low.

Scenario range: HK$0.3300 (bear) to HK$0.6000 (bull), the price of HK$0.2190 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 72/100 (solid quality), in the Consumer Cyclical sector.

Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.

LH Group Ltd reported revenue of HK$1.1B in FY2025 versus HK$998M in FY2021, a compound +2.1%/yr. Reported net income was HK$1.7M in FY2025, compounding −62.9%/yr from FY2021.

Key figures

Market cap HK$228M (≈ $29.1M) · P/S ratio 0.21 · Dividend yield 14.2% · Net margin 0.2% · Return on equity 0.7% · Return on assets (EBIT) 23.1% · Operating margin 2.4% · Revenue (TTM) HK$1.1B.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 28 out of 100 (medium confidence).

What moves the price

The share trades about 45% below its 52-week high and 5% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Consumer Cyclical peers we cover trades at −19% fair-value upside, at 115%, 1978 screens cheaper than that median.

Fair Value models

Bear HK$0.3300 Fair Value HK$0.4700 Bull HK$0.6000
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
FCF DCF HK$2.05 HK$2.75 HK$3.71 79
Growth DCF HK$2.10 HK$2.76 HK$3.63 77
Residual Income HK$0.2000 HK$0.1800 HK$0.1800 76
All 24 models by family
DCF Models
FCF DCF HK$2.05 HK$2.75 HK$3.71 79
Owner Earnings HK$1.86 HK$2.49 HK$3.36 75
5Y Revenue Exit HK$1.55 HK$2.09 HK$2.74 71
5Y EBITDA Exit HK$2.50 HK$3.76 HK$5.15 73
5Y P/E Exit HK$0.9100 HK$0.9800 HK$1.03 69
10Y Revenue Exit HK$1.69 HK$2.20 HK$2.78 66
10Y EBITDA Exit HK$2.31 HK$3.29 HK$4.46 66
10Y P/E Exit HK$1.34 HK$1.47 HK$1.59 63
Earnings-Based
Graham-Dodd HK$0.0100 HK$0.0300 HK$0.0400 65
EPV HK$1.32 HK$1.50 HK$1.66 70
Dividend Discount
Gordon GGM HK$0.3600 HK$0.5200 HK$0.6800 69
DDM Multi-Stage HK$0.3600 HK$0.5000 HK$0.6500 67
Multiples
P/E Multiple HK$0.0400 HK$0.0500 HK$0.0600 63
P/S Multiple HK$0.0300 HK$0.0400 HK$0.0500 58
P/B Multiple HK$0.0300 HK$0.0400 HK$0.0500 55
EV/EBIT HK$2.07 HK$2.70 HK$3.33 63
EV/EBITDA HK$3.18 HK$4.18 HK$5.18 64
EV/Revenue HK$1.31 HK$1.80 HK$2.29 51
Asset-Based
NCAV (Graham) HK$0.1500 HK$0.2000 HK$0.2900 51
Growth DCF
Growth DCF HK$2.10 HK$2.76 HK$3.63 77
Rev-Margin DCF HK$1.55 HK$2.12 HK$2.73 71
Economic Profit
Residual Income HK$0.2000 HK$0.1800 HK$0.1800 76
ROIC Compounder HK$1.33 HK$1.53 HK$1.71 70
Growth Earnings
Growth-Adj P/E HK$0.0300 HK$0.0400 HK$0.0500 68

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Quality Score breakdown

Overall quality 72/100

Of which business quality 74 · Market factors (momentum, volatility) 24

Profitability 49
Margins and returns on capital today
Quality Growth 71
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 7
Price trend over the last 3–12 months (market factor)
52W Momentum 3
Distance to the 52-week high (market factor)
Net Issuance 82
Share count: buybacks or dilution?

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Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 63/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−42.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year−57.0%
Dividend (yield on the price)14.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−57.0% vs −26.9%, slowing
Profit margin 2018 to 2023 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.5% → 9%
Start year 2020 (pandemic)

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Restaurants · 214 stocks

Beats the industry median on 6/11 measures
A mixed picture versus its industry peers.
Valuation
Quality Score 72 · Top 25%
Fair Value upside +114.6% · Top 25%
Profitability
Return on equity (TTM) 0.7% · Below median
Return on assets 2.1% · Below median
Net margin (TTM) 0.2% · Below median
Operating margin (TTM) 2.4% · Below median
Growth and dividend
Revenue growth 1.4% · Below median
Dividend yield (TTM) 14.2% · Top 25%

Valuation Multiplesvs Restaurants median · lower = cheaper

P/B 0.12× · Cheapest 25%
P/S (TTM) 0.03× · Cheapest 25%
P/FCF 0.2× · Cheapest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)100 · sector 38
FUTURE (revenue growth)7 · sector 21
PAST (return on equity)3 · sector 24
HEALTH (low debt)0 · sector 95
DIVIDEND (yield)100 · sector 65

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Restaurants stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value
McDonald's Corporation MCD $233.60 $162.81 −30%
Starbucks Corporation SBUX $94.86 $35.83 −62%
Chipotle Mexican Grill, Inc CMG $31.33 $34.46 +10%
Yum! Brands, Inc YUM $138.28 $76.78 −44%
Restaurant Brands International Inc QSR $71.48 $73.34 +3%
Darden Restaurants, Inc DRI $199.75 $175.20 −12%
Yum China Holdings YUMC $40.80 $50.76 +24%
Texas Roadhouse, Inc TXRH $158.45 $128.55 −19%
Domino's Pizza, Inc DPZ $301.81 $233.22 −23%
Dutch Bros Inc BROS $37.89 $10.27 −73%

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LH Group Ltd · Fair Value
HK$0.4700 +53%Fair Value
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Cite: Fair Value Calculator (2026). "LH Group Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1978

Frequently asked questions

Is LH Group Ltd (1978) overvalued or undervalued?
As of Sep 27, 2026, our model estimates a fair value of HK$0.4700 versus a price of HK$0.2190, about +115% upside (undervalued).
What is the fair value of 1978?
Our model-based fair value for LH Group Ltd is HK$0.4700 (as of Sep 27, 2026), built from audited fundamentals. The current price: HK$0.2190.
What is the quality score of 1978?
LH Group Ltd has a Quality Score of 72/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for LH Group Ltd (1978)?
Our model-based price target is the fair value of HK$0.4700 (as of Sep 27, 2026) from 24 valuation models. Cautious scenario HK$0.3300, optimistic scenario HK$0.6000. It is a calculation from audited fundamentals, not an analyst target.
What is the LH Group Ltd stock forecast for 2026?
Our models put fair value at HK$0.4700, about +115% upside versus a price of HK$0.2190 (undervalued). Cautious scenario HK$0.3300, optimistic scenario HK$0.6000. The calculation is refreshed regularly with new filings.
What is the revenue of LH Group Ltd (1978)?
LH Group Ltd reported trailing-twelve-month revenue of about HK$1.1B (latest available figure, as of Sep 27, 2026).
Does LH Group Ltd pay a dividend?
LH Group Ltd currently shows a dividend yield of about 14.25% relative to its recent price (as of Sep 27, 2026).
What is the intrinsic value of LH Group Ltd (1978)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For LH Group Ltd it is HK$0.4700 per share (as of Sep 27, 2026), against a price of HK$0.2190. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is LH Group Ltd stock overvalued or undervalued in 2026?
As of Sep 27, 2026, 1978 trades below its calculated fair value: price HK$0.2190, fair value HK$0.4700, a gap of about +115% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 1978?
No. The price is what the market pays today (HK$0.2190); the fair value is what the company's own numbers justify (HK$0.4700). For LH Group Ltd the two are HK$0.2510 per share apart. That gap is exactly why we show both numbers side by side.
How much is LH Group Ltd worth?
The market values LH Group Ltd at about HK$228M (market capitalisation, as of Sep 27, 2026). Per share that is HK$0.2190; our models calculate a fair value of HK$0.4700 per share.
What do the bullish and bearish scenarios say about 1978?
Our models span a range for LH Group Ltd: cautious scenario HK$0.3300, base HK$0.4700, optimistic HK$0.6000 per share (as of Sep 27, 2026, price HK$0.2190). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of LH Group Ltd (1978)?
Balance-sheet figures for LH Group Ltd (as of Sep 27, 2026): return on equity 0.7%. They feed the Quality Score of 72/100, which measures business quality independently of the share price.
How far is 1978 from its 52-week high?
LH Group Ltd trades at HK$0.2190, about 45% below its 52-week high of HK$0.3950 and 5% above the low of HK$0.2080 (as of Sep 30, 2026). Distance from the high says nothing about value: that is what the fair value of HK$0.4700 is for.
Which stocks are comparable to LH Group Ltd?
From the same area (Consumer Cyclical) we also value McDonald's Corporation, Starbucks Corporation, Chipotle Mexican Grill, Inc, Yum! Brands, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is LH Group Ltd stock attractive at the current price?
The data as of Sep 27, 2026: price HK$0.2190, calculated fair value HK$0.4700 (+115%), Quality Score 72/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 1978 calculated?
We run LH Group Ltd through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of HK$0.4700, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.7 % above its aggregate fair value. LH Group Ltd currently trades 53 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of LH Group Ltd (1978)?
The closing price on Sep 30, 2026 was HK$0.2190. Our model-based fair value is HK$0.4700, about +115% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with LH Group Ltd right now?
The rarer combination: high quality (72/100) AND below fair value. That earns a closer look rather than a quick verdict. The price is below even our cautious bear case (HK$0.3300). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. A fairly wide model range (HK$0.3300 to HK$0.6000) leaves room in how you read the outcome.
Where does the earnings growth of LH Group Ltd (1978) come from?
Earnings per share at LH Group Ltd grew +1.6 % a year from 2015 to 2025. Broken into its drivers: revenue per share +5.4 %, EBIT margin +12.8 %, tax rate +0.3 %, residual (interest, one-offs) −14.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.

Key figures of LH Group Ltd

How large is the market capitalisation of LH Group Ltd (1978)?
The market capitalisation of LH Group Ltd is HK$228M (≈ $29.1M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of LH Group Ltd (1978)?
The price-to-sales ratio of LH Group Ltd is 0.21 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What is the dividend yield of LH Group Ltd (1978)?
The dividend yield of LH Group Ltd is 14.2%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of LH Group Ltd (1978)?
The net margin of LH Group Ltd is 0.2% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of LH Group Ltd (1978)?
The return on equity (ROE) of LH Group Ltd is 0.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of LH Group Ltd (1978)?
On an EBIT basis the return on assets of LH Group Ltd is 23.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of LH Group Ltd (1978)?
The operating margin of LH Group Ltd is 2.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at LH Group Ltd (1978)?
Revenue at LH Group Ltd is growing +1.4% versus a year earlier (3y avg +0.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at LH Group Ltd (1978)?
Earnings per share at LH Group Ltd are growing −42.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does LH Group Ltd (1978) generate?
The free cash flow of LH Group Ltd is HK$137M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does LH Group Ltd (1978) carry?
The net debt of LH Group Ltd is HK$128M (fiscal year 2025, ≈ 0.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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